Business Potential for Diwali Sweet

8/18/2019 Business Potential for Diwali Sweet

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Title – Business Potential of Diwali Sweet

Diwali is the biggest festival of light in Hindu religion. Almost all Indian celebrate this

festival on National level. Diwali is also called as festival of light. The festival lasts for fivedays. Diwali is celebrated in Maharashtra, Gurat, Madhya !radesh, and "hhattisgarh on very

large scale.

#tate and central government is giving holiday for all their officials on these days. Most of

the offices in other sector are on holidays li$e ban$s, factories, cor%orates, semi&government

offices etc.

During Diwali good wishes are given to colleagues, relative and friends and officers. 'ots of Gifts are also distributed to relatives on this occasion of Diwali.

There are various different ways of wishing to friends ( relatives since many years. )ew

ways of wish are given below

*. Greetings cards

+. Dry )ruit #weets

-. )ire "rac$ers

. /lectronic Gifts0. Mobiles

Hence there is huge re1uirement of all the above items during Diwali festival. There is huge

re1uirement of dry fruits and sweets which is distributed as cor%orate as well as %ersonal

gifts.

This business of Diwali sweet is normally dominated by unorgani2ed sectors at small ( mid

scale.


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Executive Summery

Diwali is the festival of light, during which all most all %eo%le use to %urchase sweets for won

consum%tion as well as for giving gifts to relatives, colleagues and friends. Hence there is

huge turnover and ca%ital is invested in this business which is seasonal or for very few short

time of 3&*4 days. Irres%ective of %oor or rich, every one %urchase sweet for Diwali.

If we ta$e the average of 5s *44 %er %erson e6%enses during the Diwali for sweet, and if we

consider only %o%ulation of !une city which is near to 4 'acs a%%ro6imately then it is a

business of 4 "rs in IN5 in 3&*4 days. I) we consider the %o%ulation in India, which is *+*"r then there is huge turn around %otential for this business at National 'evel.

There are few cor%orates which are trying in this business by different ways to get the mar$et

share li$e "adbury chocolates, Haldiram s%ecial Diwali gifts %ac$ages along with local

%layers li$e 7a$a Halwai, "hitale 8andhu, Go$ul #weets and many more.

Hence we are trying to study the business environment, com%etition, sale, %romotion,

advertisement, mar$eting strategy ado%ted and tries to develo% new strategy to convert this business as a %otential o%%ortunity.


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Business Description

The 8usiness of manufacturing the sweet or Mithai is local or cottage ty%e. It is %re%ared

with mostly manual ty%e ( traditional ways. There is no high end technological involvement.There are labours having conventional $nowledge learned by wor$ing under the main "hef

9Halwai:. There are Mithaiwala sho%s avaialbe in every mar$et %lace. They have got their

own $itchen where these sweets are manufactured and %ac$ed, are can be as small as *44 s1.

feet.

The investment if in %lace and some utensils and a sho% where small dis%lay with

refrigeration facility is used. Generally cleanliness in sho% creates maor im%act on foot fall

of customers.

During this festival season all %oor and rich %eo%le used to %urchase sweet for own

consum%tion as well as to distribute to relatives, friends. There are various ty%es of sweets

available li$e Nam$ins, Dry fruits Mithais, "hivada, 'addu, "ha$ali, 8engali Mithai,

7aranis and many more.

These conventional sweet and Nam$in items are also offeredby sweet marts. There are few

organi2ations also involed in to do sale of Diwali sweet on no %rofit ( no loss basis li$e "II.

They are offering these sweets for low income grou% at reasonable %rice, which hel%s them to

create their brand awareness.

It is not %ossible for small sweet sho% to have advertisements of large scale to increase their

sale. Normally the advertisement of this sweet sho% is carried out due to its 1uality and

services through mouth %ublicity. 8ut during festive season they do some %endol to

accommodate more consumers and highlighting their %roducts. They uses tem%orary dis%lay

method for different or most selling items.

;n the contrary to this the cor%orate %layers li$e "adbury Haldiram %ush their %roducts

through advertisement cam%aigns on television, hoardings and banners on large scale.


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Competition & Environment

The main com%etition is among the sweet marts and cor%orate %layers. 8ut if you see the

com%etition between Haldiram %roducts and local sweet marts %roduct< it negligible becausethe sweet mart %roducts are different which are %erishable, hence sold by local mithaiwala

only.

!roducts manufactured by Haldiram are mostly Nam$ins which can be %reserved for longer

time. Also in case of "adbury chocolate also. 8ut now a days the %roducts from cor%orate are

mostly %referred as cor%orate Diwali gits. Hence we cannot deny that these brands are ta$ing

some mar$et share.

Another %roduct which is normally %referred against sweet ma$e from mil$ ( dry fruits.

8ecause of lot of adulteration in sweets made from mil$ %roducts and unhygienic ma$ing

conditions ( %erish ability. Many consumers are diverting to dry fruit as Diwali gifts.

5aw Material ( !rocess=

Mostly sweets are mad from dehydrated mil$ called as 7howa. This $howa is %re%ared by

heating mil$ for removing water content from it u% to certain level. This $howa is added withsugar, flavours, dry fruits colours etc to made mithai from it. This mithai are made in different

si2es and sha%es.

The %rocess of ma$ing mithai is mostly manual. There is no as such very high technical

%rocessing is involved. The %rocess are not standardised, raw material consum%tion and

formula is not fi6ed. /very other sweet mart has got his own formula. The %rocess is

man%ower driven.

#ince the %roduct is %erishable and very less shelf life, mass manufacturing or high technical

%rocess cannot be em%loyed. The availability of raw material which is mil$ %uts some

limitation on this %roduct. The 1uality of mil$ available will be given the 1uantity of $nowa

can be received.


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Packaging & Distribution

!ac$aging is normally is made manually as %er the re1uirement of consumers. There are

certain standard %ac$s also in * 7g and > 7g which are made available during festival. Normally corrugated bo6 used as %ac$ing material which are normally %rinted with

manufacturer name ( details for branding %art.

There is no any channel of distribution as such. )or re%uted brands li$e 7a$a Halwai and

"hitale 8andhu has got their own stores as well as franchise.

S!"T #nalysis

The uni1ueness in %roduct and 1uality services of each brand has got his strength li$e

"hitale 8andhu. !eo%le ait in 1ueue in front their sho% for certain %roducts. The maor

wea$ness of this %roduct is %erish ability. ;%%ortunities are there as more and more %eo%le

are %urchasing sweets from outside as conventional way of ma$ing sweets are vanishing day

by day. The threat to this business is from cor%orate ( chocolate manufacturing com%anies

u% to certain e6tent. They are %ic$ing some share from sweet marts business. #ometime the

rule and regulation from government %lays a maor role since the business comes under food

item services.

$arketing $ix & Strategy #%option

#r

No

#trategy !ractical A%%roach

*.4 !roduct ?ni1ueness in %roduct, having outstanding

1uality ( test is mostly acce%ted by consumer.

@ariety and range also attracts the consumer. The

re%utation in consistent ( hygienic 1uality. #ome

conventional sweets which are very s%ecific

during Diwali festival will add value to the store

and re%utation.


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+.4 !rice !rice is de%endent on the re%utation of store

having 1uality %roduct. The store li$e "hitale

8andhu can charge %remium %rice as com%ared to

another local Mithaiwala. It ta$es years to build

the re%utation. There ais very less %rice difference

in same %roduct soldby various stores. !rices are

highly o%en since there is no any hidden cost and

%roducts come in food category. Government has

no control in this %roduct segment as %er as %rice

is concerned. "hitale 8andhu ( 7a$a Halwai can

charge some %remium com%ared to others not

$nown Mithaiwalas.

-.4 !lace ;f course the location of Mithailwal is im%ortant.

It should be easy to locate. #o normally it should

be located in mar$et %lace where other grocery

store, general stores are available.

.4 !romotions !romotion is mostly on mouth %ublicity. N;

s%ecial efforts or money s%ent on advertisement.

8ut now a days because of intense com%etitions

some %om% let advertisement is done in local

areas. The good 1uality of dis%lay and hygienic

conditions are used as additional tools.


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Conclusion

The business of sweet during Diwali has got good %otential and this business is growing year

on years. The trend of distribution of sweets during Diwali is increasing. The trend of not toma$e sweets are home is also growing. Hence there are very bright future in this business.

;nly care need to ta$e to sustain and flourish in this business is that to bring innovative

%roduct having outstanding 1uality acce%tance by consumer. Highly hygienic manufacturing

conditions and consistence in 1uality and 1uantity standard.

Documents

Business Potential for Diwali Sweet